Knappa valley calculate the value of the firm

Page 11 of 20 Question 11 (10 points) Knappa Valley Winerys (KVW) most recent FCFF is $4.500.000. KVW's target debt-to-equity ratio is 0.25. The market value of the firm's debt is $10 million and KVW has 2 million shares of common stock outstanding. The firm's tax rate is 35%, the shareholders require a return of 15% on their investment, the firm's before-tax cost of debt is 8%, and the expected long-term growth rate in FCFF is 6%. Calculate the value of the firm. $77.97 million $78.97 million $79.97 million $80.97 million